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The Long-Term Effects of Childhood Exposure to the Earned Income Tax Credit on Health Outcomes

Author

Listed:
  • Braga, Breno

    (Urban Institute)

  • Blavin, Fredric

    (Urban Institute)

  • Gangopadhyaya, Anuj

    (Urban Institute)

Abstract

The Earned Income Tax Credit (EITC) is a central component of the U.S. safety net, benefiting about 27 million families. Using variation in the federal and state EITC, this paper evaluates the long-term impact of EITC exposure during childhood on the health of young adults. We find that an additional $100 in the average annual EITC exposure between ages 0 and 18 increases the likelihood of reporting very good or excellent health by 2.7 percentage points and decreases the likelihood of being obese by 1.0 percentage point between ages 22 and 27. Direct program transfers, increases in pre-tax family earnings, and increases in health insurance coverage are channels through which the EITC improves health.

Suggested Citation

  • Braga, Breno & Blavin, Fredric & Gangopadhyaya, Anuj, 2019. "The Long-Term Effects of Childhood Exposure to the Earned Income Tax Credit on Health Outcomes," IZA Discussion Papers 12417, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12417
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    1. Gangopadhyaya, Anuj & Blavin, Fredric & Gates, Jason & Braga, Breno, 2019. "Credit Where It's Due: Investigating Pathways from EITC Expansion to Maternal Mental Health," IZA Discussion Papers 12233, Institute of Labor Economics (IZA).
    2. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.
    3. Jacob Bastian & Lance Lochner, 2022. "The Earned Income Tax Credit and Maternal Time Use: More Time Working and Less Time with Kids?," Journal of Labor Economics, University of Chicago Press, vol. 40(3), pages 573-611.
    4. Jacob Bastian & Lance Lochner, 2020. "The EITC and Maternal Time Use: More Time Working and Less Time with Kids?," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20206, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    5. Jacob Goldin & Elaine Maag & Katherine Michelmore, 2021. "Estimating the Net Fiscal Cost of a Child Tax Credit Expansion," NBER Chapters, in: Tax Policy and the Economy, Volume 36, pages 159-195, National Bureau of Economic Research, Inc.
    6. Anna Godøy & Michael Reich & Jesse Wursten & Sylvia Allegretto, 2024. "Parental Labor Supply: Evidence from Minimum Wage Changes," Journal of Human Resources, University of Wisconsin Press, vol. 59(2), pages 416-442.
    7. George L. Wehby & Robert Kaestner & Wei Lyu & Dhaval M. Dave, 2022. "Effects of the Minimum Wage on Child Health," American Journal of Health Economics, University of Chicago Press, vol. 8(3), pages 412-448.
    8. Anuj Gangopadhyaya & Fredric Blavin & Breno Braga & Jason Gates, 2020. "Credit where it is due: Investigating pathways from earned income tax credit expansion to maternal mental health," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 975-991, September.

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    More about this item

    Keywords

    health outcomes; children; EITC;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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